05/01/2018
WHAT IS BITCOIN?
Many people believe Bitcoin to be very complicated, when in fact it's a lot more simple and intuitive than what most people think. This series of Bitcoin post aims to help everyone gets a grasp of the basic, and over time also present further learning opportunities for those that want to know more.
Bitcoin is often explained by comparing it to something specific people already know, but this is often what create a lot of confusion. Bitcoin is a new technology that is unlike anything we have seen before. So a better way to explain it is as a combination of a few different things we are already used to.
Firstly, because it allows you to move money so easily, Bitcoin functions as a payment system, similar to bank transfers or credit card, only a bit better.
Secondly, Bitcoin is in some sense similar to gold. That is why many people even refer to it as "digital gold"or Gold 2.0. Think of it as using gold for money, except it's also very easily move around with.
Thirdly, Bitcoin is like the internet, in that no single entity controls it, so anyone can pretty much use it as they like. This gives it very unique characteristics.
These three characteristics also reinforce one another, so they are all interwoven. For now, just imagine what would happen if you took a big pot and threw in a credit card, a piece of gold, and a hint of internet---- mix it all up and pull out a brand new compound-BITCOIN.
